Insurance agency fined over unlicensed broker

The Supreme Judicial Court has upheld a $30,000 fine the Division of Insurance imposed against an insurance agency for paying commissions to an unlicensed broker.

The Appeals Court had concluded that fines could only be assessed against Anawan Insurance Agency under G.L.c. 175, §177, and not G.L.c. 176D, §7.

But the SJC disagreed.

“In light of the unambiguous language of c. 176D, §12, we think it clear that in a case such as this one, where violations have been found of both a specific statute such as c. 175, §177, regulating one aspect of the insurance industry, and the more general c. 176D, the commissioner, acting through the division, permissibly may impose separate penalties under both statutes,” Justice Margot Botsford wrote for a unanimous court.